State firms targeted in merger plan spending Sh118bn on salaries annually

A new Bill reinstates the role of Parliament in the adjudication of divestitures from government enterprises.

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The 33 State-owned entities targeted for mergers will spend a combined Sh118.54 billion on salaries and allowances in the current financial year, underscoring the huge recurrent savings if the reforms are enacted.

The Parliamentary Budget Office (PBO) says the Higher Education Loans Board (Helb) has the biggest recurrent budget among the 33 entities with a budget of Sh41.54 billion in the financial year to June 2026 followed by Kenya Rural Roads Authority (KeRRA) at Sh22.1 billion, Universities Fund (UF) at Sh17.26 billion and Kenya Urban Roads Authority (KURA) at Sh10.4 billion.

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